Whenever I analyze the overall commercial real estate market in terms of future prospects, I’m strongly inclined to divide the category into separate office and industrial segments. It’s important to understand that these are very distinct sectors.
Starting with the office sector, it’s marching along pretty much as it has been for multiple quarters, without significant dips or gains. It’s been very consistent, completely across the board. The challenge is that tenants and prospective tenants have a wealth of options. To illustrate how this plays out in the real world, consider that many of my clients are private owners, either of standard office or medical space. And they have absolutely great properties. What I tell them is that when the right tenant comes along, they need to move extremely quickly. They cannot procrastinate, because if they delay, the opportunity will very likely go away. Or, more accurately, to go elsewhere.
For better or worse, that’s how the office market has been functioning. And I don’t anticipate we’ll see any significant change in the immediate future.